Arkema Extends its Time Period for Call Option to Access Sunke’s Acrylic Acid Production Capacity

Published on 2015-02-20. Author :
SpecialChem

Arkema and Jurong Chemical announce that they have concluded an agreement regarding the next steps of their cooperation in Acrylics in China. This agreement extends, until January 2016, the period for Arkema to exercise its call option to access a total of 320,000 t/year acrylic acid production capacity.

In 2014, Arkema and Jurong Chemical set up Sunke, a manufacturing joint-venture which owns and operates Acrylic Acid and Butyl Acrylate productions lines in Taixing, Jiangsu Province, PRC.

Under the new agreement, Arkema’s call option to increase its share in Sunke and access a total production capacity of 320,000 t/year of Acrylic Acid has been extended until January 2016. According to the terms of the agreement signed in January 2014, the exercise of this option was initially expected during the 1st quarter 2015.

In the meantime, the joint-venture will be jointly operated[1] by the partners and production will be adjusted to market conditions providing partners with all the flexibility needed to optimize performance.

The financial terms of the initial agreement signed in January 2014 have been adjusted to reflect the extension of the option. All other conditions remain unchanged.

Finally, Arkema’s option to acquire the remaining third of the acrylic acid production capacities and fully hold Sunke’s share capital remains unchanged and can be exercised until early 2020.

About Arkema

A global chemical company and France’s leading chemicals producer, Arkema is building the future of the chemical industry every day. Deploying a responsible, innovation-based approach, we produce state-of-the-art specialty chemicals that provide customers with practical solutions to such challenges as climate change, access to drinking water, the future of energy, fossil fuel preservation and the need for lighter materials. With operations in close to 50 countries, some 19,000 employees and research centers in North America, France and Asia, Arkema generates pro forma annual revenue of some €7.6 billion, and holds leadership positions in all its markets with a portfolio of internationally recognized brands.